Fantom drops 10% in 24 hours: Is $1.4 too far for FTM?
- Crossing $1 is critical for FTM.
- Selling pressure on Fantom was high, and indicators looked bearish.
The ongoing bear market had heavily affected Fantom [FTM], as the token registered a double-digit decline over the last few days.
However, the token’s price was in a consolidation phase at press time. If a breakout happens, then FTM’s price might reach new highs soon.
Fantom sets a new target
FTM surged sharply on the 16th of March, but the trend changed soon, which neutralized its weekly gains. According to CoinMarketCap, in the last 24 hours alone, FTM was down by 10%.
At the time of writing, FTM was trading at $0.7912 with a market capitalization of over $2.2 billion.
Since the token’s price volatility increased, people started to talk about FTM, causing its Social Volume to rise.
Interestingly, despite the price drop, FTM’s Weighted Sentiment increased, meaning that bullish sentiment around the token was dominant in the market.
Source: Santiment
On the 16th of March, crypto analyst Ali posted a tweet highlighting the fact that FTM’s price was in a consolidation phase. If the trend changes, the next target for FTM might be $1.44.
Since the target looked ambitious, AMBCrypto took a look at FTM’s liquidation levels to see whether there were any roadblocks before $1.44.
We found that FTM will witness a high liquidation rate near $1. High liquidations often restrict prices from moving up. Therefore, crossing over the $1 barrier without hurdles is crucial for FTM.
Source: Hyblock Capital
Problems lie ahead for Fantom
AMBCrypto’s analysis of Santiment’s data revealed a few bearish metrics. For instance, FTM’s Supply on Exchanges increased while its Supply outside of Exchanges dropped.
This suggested that selling pressure on the token was high at press time.
Its supply held by top addresses dropped slightly during this time, meaning that whales were also selling FTM.
Source: Santiment
AMBCrypto also took a look at Fantom’s daily chart to better understand which way the token was headed. The technical indicator MACD displayed the possibility of a bearish crossover.
FTM’s Relative Strength Index (RSI) registered a downtick and was headed towards the neutral mark during the time of the report as well, indicating a continued price downtrend in the coming days.
Read Fantom’s [FTM] Price Prediction 2024-25
FTM’s Bollinger Bands revealed that FTM’s price was above the 20-day simple moving average (SMA), which could be a key support level.
Hence, the possibility of FTM beginning another bull rally after touching the support can’t be ruled out yet.
Source: TradingView
